According to the survey results, 44% of FMCG industry executives highlight the current economic environment as stable. In addition, 22% of survey respondents indicated that the existing economic conditions are favorable.
Strong private consumption and the introduction of significant domestic reforms in India, rising domestic demand in the UK post Brexit, expected stronger economic growth rate in Japan, fiscal easing in the US, and expected growth in investments within infrastructure and real estate in China, are adding to a positive opinion about the existing economic environment.
Evidencing the trend, confectionery company Mondelez has launched a new brand Cadbury Fuse in India, with the intention to expand its premiumization in the countline space in India during 2017.
The research source in this report is based on the surveyed opinions and expectations of 102 global FMCG industry executives surveyed in January 2017. Survey results reveal that 25% of executives view the current economic state as unfavorable or very unfavorable. The above opinion is a result of prevailing geo-political tensions, weaker economic environment in emerging markets such as Argentina and Brazil, and the increasing risk of terrorism in western countries that could bring about a slowdown in economic activity due to fear and uncertainty.